By Jim Costello on November 27th, 2018
Canadian acquisitions in the U.S. have reached a record level due to a cluster of large entity-level deals, the latest US Cross-Border Investment Compendium shows. Canadian investors were behind 41% of all cross-border volume in the U.S. in the year through the third quarter, more than the next four biggest country sources combined.
French investors were the second largest investor group in the year through the third quarter, due in large part to the Unibail-Roadmco purchase of Westfield earlier in 2018. Singaporean investment in the U.S. slipped by 16% and this group of investors fell to the number three spot. Activity from Chinese investors fell by more than 50% but they retained their position as the fourth largest investor group. Germany was the fifth largest source of cross-border investment.
Without Canadian investors such as Brookfield AM, the CPP Investment Board, OMERS and CDPQ, the momentum for cross-border activity in the U.S. would have stalled into the third quarter. Deal volume from investors other than Canadians slipped to $45.6 billion versus a $46.3 billion level in the 12 months to the second quarter. This slowdown came despite a number of entity-level transactions involving cross-border investors from outside the Americas.
If you are a current RCA subscriber log into your account to download the US Cross-Border Investment Compendium PDF and data file for Q3’18 from the RCA website. To get more information about becoming a client, contact us.